The Global API Marketplace Market size is expected to reach $47.8 billion by 2030, rising at a market growth of 17.6% CAGR during the forecast period.
Marketplace services provide extensive documentation for the listed products, including information about their functionalities, endpoints, parameters, and utilization instructions. Hence, the services segment would register 2/5th share in the market by 2030. This enables users to comprehend API capabilities and methods for incorporating them into their applications, the development of API banking is being fuelled by available banking rules like the Revised Payment Services Directive (PSD2) of the European Union and comparable initiatives in other regions. With the help of these regulations, traditional banks and FinTech startups can compete, innovate, and collaborate by having to open up their customer data and payment infrastructure through API. Some of the factors impacting the market are development in cloud computing, increasing digital transformation, and problems with API security.
Businesses can use cloud computing to execute operations quickly and effectively to adapt to shifting market conditions. Technology has made it possible to provide a very engaging customer experience in ways that were before unthinkable. Cloud platforms offer a scalable and cost-effective environment for hosting and deploying APIs. API marketplaces leverage cloud infrastructure to provide a wide variety of APIs and make it simpler for developers to access and integrate services from many providers. Consequently, the API market is acquiring traction as cloud computing adoption increases. Digital transformation is driven by drastically changing user expectations. Most industry verticals, such as BFSI, healthcare, and retail, are transforming digitally. The primary goal of digital transformation in BFSI is to automate and digitize processes in banking and fintech organizations and to streamline the organization's most essential processes. In the future, it is anticipated that more sectors of the healthcare industry will adopt sophisticated, cutting-edge technology, accelerating the digital transformation of healthcare. The healthcare application programming interfaces enable providers to develop new web, mobile, and social apps to engage and connect with patients. In healthcare, API facilitates the extraordinary connectivity anticipated in the digital era.
However, API infrastructures are susceptible to security breaches, including cross-site scripting (XSS) attacks and SQL injection attacks; consequently, it is crucial to implement security measures to protect against these threats. Over the years, an organization may have invested significant resources in firewalls, segmentation, vulnerability management programs, and other security measures. Still, an adversary could evade many common security measures if it has insecure APIs. A significant compromise could result from exposing an insecure API to the internet. It is anticipated that these security issues with API will impede their adoption and thus slow the expansion of the market.
Based on component, the market is segmented into platform and services. In 2022, the platform segment held the highest revenue share in the market. A platform for API marketplace is a specialized online platform that enables the discovery, exchange, and integration of APIs between providers and consumers. It is a centralized hub where providers can showcase and provide their APIs and where consumers can search for, evaluate, and acquire the products that best suit their needs. Frequently, the marketplace platforms involve additional features that improve API integration. These attributes may include rating and review systems, enabling users to provide feedback and discuss their experiences with the interfaces they have used.
By organization size, the market is bifurcated into SMEs and large enterprises. The SMEs segment garnered a significant revenue share in the market in 2022. API marketplaces attract consumers who actively seek interfaces suited for application integration. This intended audience comprises developers, businesses, and organizations seeking specific features or services. SMEs can leverage this audience to increase their chances of connecting with potential customers interested in their offerings. Without the need for extensive research or time-consuming evaluations, SMEs can readily investigate various offerings. SMEs can also accelerate the product or service development process by utilizing APIs available on the market.
On the basis of end user, the market is fragmented into API providers and consumer. In 2022, the consumer segment witnessed the largest revenue share in the market. A marketplace for APIs is a comprehensive platform that adheres to the needs of both consumers and providers. It enables users to readily discover and connect with interface products that suit the requirements of their applications. The marketplaces frequently offer comprehensive documentation, ratings, and reviews for the listed APIs. This permits consumers to assess the product's quality, functionality, and performance. The availability of user feedback and ratings assists consumers in making informed decisions and selecting APIs that have proved dependable and effective.
The consumer segment is further subdivided into telecom & marketing, financial services, healthcare, and others. The telecom and marketing segment procured the highest revenue share in the market in 2022. Telecom companies use APIs to monitor and manage their network infrastructure. These APIs provide real-time data on network performance, allowing for proactive maintenance and troubleshooting. Marketing professionals use APIs to integrate social media platforms into their marketing tools. This allows for scheduling posts, analyzing engagement metrics, and automating social media campaigns. Therefore, the widespread use of APIs in these companies is accountable for the growth of the segment.
| Report Attribute | Details |
|---|---|
| Market size value in 2022 | USD 13.2 Billion |
| Market size forecast in 2030 | USD 47.8 Billion |
| Base Year | 2022 |
| Historical Period | 2019 to 2021 |
| Forecast Period | 2023 to 2030 |
| Revenue Growth Rate | CAGR of 17.6% from 2023 to 2030 |
| Number of Pages | 251 |
| Number of Table | 420 |
| Report coverage | Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Companies Strategic Developments, Company Profiling |
| Segments covered | Component, Organization Size, End User, Region |
| Country scope | US, Canada, Mexico, Germany, UK, France, Russia, Spain, Italy, China, Japan, India, South Korea, Singapore, Malaysia, Brazil, Argentina, UAE, Saudi Arabia, South Africa, Nigeria |
| Growth Drivers |
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| Restraints |
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Region-wise, the market is analysed across North America, Europe, Asia Pacific, and LAMEA. In 2022, the North America region led the market by generating the highest revenue share. North America has a substantial presence of significant players. These companies have distinguished themselves as market leaders with extensive experience developing and providing superior solutions. Their presence aids in the general expansion of the market in the region. The demand for APIs, a vital part of digital transformation initiatives, is a significant factor in North America's market expansion. Businesses across various sectors adopt digital technologies to improve operations, enhance customer experiences, and spur innovation.
Free Valuable Insights: Global API Marketplace Market size to reach USD 47.8 Billion by 2030
The market research report covers the analysis of key stakeholders of the market. Key companies profiled in the report include R Software Inc., Celigo, Inc., Gravitee Topco Limited, Apilayer Data Products GmbH (Idera, Inc.), CompanyHub IT Solutions Pvt. Ltd., Abstract API Inc, Zapier, Inc., Salesforce, Inc. (MuleSoft), ServiceNow, Inc., and beNovelty Limited.
By Component
By Organization Size
By End User
By Geography
The Market size is projected to reach USD 47.8 billion by 2030.
Development in cloud computing are driving the Market in coming years, however, Problems with API Security restraints the growth of the Market.
R Software Inc., Celigo, Inc., Gravitee Topco Limited, Apilayer Data Products GmbH (Idera, Inc.), CompanyHub IT Solutions Pvt. Ltd., Abstract API Inc, Zapier, Inc., Salesforce, Inc. (MuleSoft), ServiceNow, Inc., and beNovelty Limited.
The expected CAGR of this Market is 17.6% from 2023 to 2030.
The Large Enterprises segment is leading the Market by Organization Size in 2022; thereby, achieving a market value of $27.7 billion by 2030.
The North America region dominated the Market by Region in 2022 and would continue to be a dominant market till 2030; thereby, achieving a market value of $16.2 billion by 2030.
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